The waiver of the real property gains tax (RPGT) has resulted in more secondary market transactions and new demand for sub-sale property, industry data showed.
Juwai IQI group co-founder and CEO Kashif Ansari said the tax exemption has helped to reduce costs which allow homeowners to upgrade their respective properties before entering the secondary market.
Kashif said upgrade buyers account for 30% of the secondary market with more upgrade buyer activity translating to more secondary home sales. To compare, upgrade buyers account for only a quarter of the primary market.
“The gains tax exemption also benefits investors. While it may not directly put money in the pocket of investors purchasing today, it reassures them about investing in the property market and the possibility of making gains.
“The exemption suggests to investors that they will keep more of their earnings rather than pay taxes upon sale,”
Source: The Malaysian Reserve
